Hurricane Harvey could leave Texas $1 billion short

Texas Land Commissioner George P. Bush, left, talks to Fort Bend County representatives and representatives from cities in Fort Bend County during a roundtable discussion about the state of housing recovery after Hurricane Harvey at the Historic Courthouse Tuesday, Nov 28, 2017 in Richmond. ( Michael Ciaglo / Houston Chronicle) less

Texas Land Commissioner George P. Bush, left, talks to Fort Bend County representatives and representatives from cities in Fort Bend County during a roundtable discussion about the state of housing recovery ... more

Photo: Michael Ciaglo, Houston Chronicle

Photo: Michael Ciaglo, Houston Chronicle

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Texas Land Commissioner George P. Bush, left, talks to Fort Bend County representatives and representatives from cities in Fort Bend County during a roundtable discussion about the state of housing recovery after Hurricane Harvey at the Historic Courthouse Tuesday, Nov 28, 2017 in Richmond. ( Michael Ciaglo / Houston Chronicle) less

Texas Land Commissioner George P. Bush, left, talks to Fort Bend County representatives and representatives from cities in Fort Bend County during a roundtable discussion about the state of housing recovery ... more

Photo: Michael Ciaglo, Houston Chronicle

Hurricane Harvey could leave Texas $1 billion short

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AUSTIN - Senate leaders warned Tuesday that Hurricane Harvey could put a billion-dollar hole in Texas' budget, an ever-growing amount that could affect how much money is available for other state programs.

Only $20 million remains in the state disaster-assistance fund, Senate Finance Committee Chair Jane Nelson said at a public hearing Tuesday on the status of hurricane recovery efforts.

"Our state costs are escalating," said Nelson, R-Flower Mound. "We need to be judicious. ... If we, God forbid, had another disaster in the next 18 months, where would we get the money?"

The Legislature will not convene in a regular session until January 2019.

The state has spent more than $1.7 billion so far in state funds, along with billions in federal assistance, according to updated numbers provided to the committee on Tuesday. Legislative Budget Board officials said as much as $2 billion in additional state funds may be needed in 2019 to cover hurricane-related school costs.

The committee also grilled Texas Land Commissioner George P. Bush, who is in charge of housing relief programs, about growing complaints from storm victims about the slow pace of repairs and temporary housing.

Bush said 8,702 households have immediate needs, out of 890,000 Texans overall who have applied for federal disaster relief - including housing assistance.

Bush said that $5 billion in assistance approved by the U.S. Department of Housing and Urban Development may not arrive in Texas until the fall of 2018, a delay attributed to rules that must be written and approved in Washington.

State Sen. Lois Kolkhorst, R-Brenham, whose district was hard hit by Harvey, acknowledged that the road to recovery from the nation's most destructive storm "will be a long, long road."

Bush said that $1 billion in immediate state funding would allow temporary housing assistance to be speeded up. Those funds could be fully reimbursed later by the federal government, he said.

State Sen. Royce West, D-Dallas, suggested those funds could be borrowed quickly from the state's Rainy Day Fund - a savings account - to expedite the housing recovery for thousands of Texans, some of whom are living in tents.

"We'd need to have a special session" to approve that borrowing, West said, drawing silence from other committee members.

Gov. Greg Abbott has said he does not want to call a special session and intends to allow state agencies to spend into their 2019 budgets to pay the storm bills, with repayment by the Legislature in 2019.